India’s Cheapest Power is Here — The Grid Must Catch Up

Context

Solar and wind energy have emerged as the cheapest sources of electricity in India. Renewable energy deployment is accelerating rapidly, with India adding over 45 GW of renewable capacity in 2025, comparable to annual additions in the United States. Combined with some of the world’s lowest battery costs, India can now deliver firm clean power at nearly ₹3.5 per kWh.

However, the biggest challenge to India’s energy transition is no longer power generation—it is the transmission infrastructure required to transport renewable electricity efficiently across the country.

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Transmission Bottleneck: The Key Challenge

• More than 50 GW of renewable energy capacity is currently stranded because generation projects can be completed within 12–18 months, whereas transmission lines typically require 3–5 years.

Reasons for Delays

• Land acquisition challenges
• Multiple regulatory and agency approvals
• Restrictions on developing new transmission corridors

Growing Demand

India currently possesses:

• Nearly 250 GW of installed renewable energy capacity
• Around 100 GW under construction

To meet future electricity demand and support the electrification of transport and industry, India may require nearly 2,000 GW of renewable capacity by 2050.

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Creating Clean-Energy Superhighways

While expanding transmission infrastructure is necessary, improving the utilisation of the existing grid can provide substantial gains.

Studies indicate that optimising current transmission assets could unlock almost 1,000 GW of additional renewable energy capacity.

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1. Role of Energy Storage

Present Situation

Most renewable projects utilise their transmission connections for only about 25% of the time.

• Solar power primarily uses transmission lines during daylight hours.
• Transmission infrastructure remains underutilised during evenings and nights.

Solution: Battery Energy Storage Systems (BESS)

Installing batteries alongside renewable energy plants can:

• Store excess daytime electricity
• Supply power during peak demand periods
• Improve utilisation of existing transmission infrastructure

Benefits

• Transmission utilisation can increase by 2–3 times
• No requirement for additional land or transmission corridors
• Can support nearly 400 GW of additional clean energy capacity

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2. Reusing Coal-Based Transmission Corridors

India has several ageing and underutilised coal-fired power plants.

Current Scenario

• Nearly 100 GW of coal-based generation capacity operates at low utilisation levels.
• These plants already possess substantial transmission infrastructure.

Strategy

Develop solar and wind projects near such coal plants and utilise existing transmission connections.

Benefits

• Avoids construction of new transmission corridors
• Reduces transmission costs
• Generates economic benefits for both renewable developers and coal plant owners
• Can facilitate nearly 100 GW of additional renewable capacity

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3. Leveraging Existing Substations

Many transmission substations possess spare capacity that can be utilised with minimal modifications.

Approach

• Add new renewable energy connections to existing substations.
• Integrate battery storage systems for improved load management.

Benefits

• Better peak demand management
• Optimised power flows across the grid
• Potential to integrate nearly 100 GW of additional clean energy capacity

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4. Advanced Transmission Technologies

A significant portion of India’s transmission network still uses conventional conductors that:

• Sag under high temperatures
• Restrict power transfer capability

Solution: High-Temperature Low-Sag (HTLS) Conductors

HTLS conductors:

• Carry substantially higher electricity loads
• Use existing towers and rights-of-way
• Are manufactured domestically

Benefits

• Nearly double transmission capacity
• Reduce dependence on imports
• Enable faster grid upgrades

Combined Impact

Reconductoring existing lines, combined with energy storage and shared transmission infrastructure, can raise renewable integration potential to over 1,000 GW.

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Advantages of Grid Optimisation

These measures offer several advantages:

Faster Deployment

• Can be implemented within months rather than years

Reduced Land Requirements

• Minimal need for new land acquisition
• Lower risk of social and environmental conflicts

Lower Costs

• Improved utilisation reduces the average cost of transmitting electricity

Easier Project Development

• Locating projects near coal plants, substations, and renewable energy parks simplifies approvals and execution

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Future Transmission Expansion

India plans to expand its transmission network by nearly 40% over the next decade.

Investment Requirement

• Estimated cost exceeds $100 billion
• One of the world’s largest grid expansion programmes

Future-Ready Infrastructure

New transmission lines should incorporate:

• HTLS conductors
• Integrated energy storage systems
• Smart grid technologies

Such lines can transmit 4–5 times more clean energy with only a modest increase in cost.

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Policy Measures Required

Encourage Renewable + Storage Projects

State regulators should expand policies that incentivise pairing solar and wind projects with battery storage systems.

Promote Advanced Transmission Technologies

Procurement norms should recognise the long-term benefits of:

• HTLS conductors
• Grid-enhancing technologies
• Storage-integrated transmission systems

Integrated Planning

Coordinated development of:

• Renewable Energy Zones (REZs)
• Transmission corridors
• Energy storage infrastructure

is essential for efficient movement of large volumes of low-cost clean electricity.

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Conclusion

India has achieved a major milestone by making renewable energy the cheapest source of electricity. The next phase of the energy transition depends not on generating more power, but on moving that power efficiently.

An optimised and future-ready grid can unlock over 1,000 GW of additional renewable capacity, support energy-intensive industries such as steel, aluminium, cement, chemicals, and data centres, and strengthen India’s energy security.

Thus, the electricity grid is no longer merely supporting infrastructure—it has become a critical driver of economic growth, industrial competitiveness, energy security, and India’s low-carbon future.